Weekly Story About Intentional Businesses.
Let me start by saying 2 things:
1. You or anyone can build an operate any business and structure however they want. So if this article doesn’t help you, the next one very well might.
2. I make it a rule to only discuss frameworks that I’ve used or currently do. There is no promise it will help everyone. My experience is mine alone. I just choose to share it.
Now. Getting paid. Super big issue for some in this business.
It has a lot to do with many things. But it’s 100% within your control.
I’ve posted a video. I ask you to stop right here and watch it. Then come back.
https://youtu.be/y-PvBo75PDo?si=thyn5wWQwtDLlfXq
Welcome back.
I started in this business in 2002.
I started with a medium sized company that is now at 750 million. They started out with 2 partners that had been working for another company. So they knew what they knew. But they also knew that what happens is your choice.
I was still new and flew to manage a fire in Memphis Tenn. Kind of a dumpy bar and grill. It was one thought that it was arson. But it wasn’t.
This was around a 400k cleaning job.
I was the PM. I had set a ROM and had a contract signed to start.
2-3 days in an adjuster and his little consultant arrived.
We walked with the client and discussed the scope. No real disagreements, Except but our rates, but those were already locked in and attached to the contract.
We all went back to a small clean room I’d had built.
A PVC-poly chamber with AC and power. Tables etc.
The carrier and the client were at their table discussing their (client) immediate financial needs. Rent, BI, vendors, payroll.
They settled on a distribution.
The adjuster asked the client “does your contractor have a deposit or draw invoice?”
The client thought and shrugged. “No, they haven’t asked yet”.
I stopped them and said I was drafting it up now.
I said we need $125,000 to keep going then a draw at halfway.
Adjuster said sure.
Now. Had I not been there, the future of our company might have been different.
We always had a deposit and 24-48 hour terms.
We billed T&M daily and updated client and stakeholders daily, including the burn.
When I handed over an invoice it was understood that we expected a check within days.
Now what if I didn’t mention that? How long do they think we would wait?
I did this my entire career and in my own business. I was cash flow positive and I scaled.
When I start any job I find the right time to ask “who is paying me and when”. Then I shut up. Questions, not random thoughts.
If they gave the wrong answer I told them if we are financing and acting as a bank, that’s a different contract and rate sheet.
So the video is telling and I’m sure you can connect the dots.
Is this possible, of course. I just proved it.
Do we have to keep waiting 30+ days? No. Unless you want.
Carriers invest the reserve amount they owe. Daily they make points. Multiply this by 1000’s of claims and you can guess why they will never just up one day decide to pay.
So I understand the reviews they claim they need to do? Yes. Are there contractors that don’t know what they are doing. Yep.
Is that me or even you? Probably not.
Do you deserve to starve because they want to make money? Nah
Carrier doesn’t owe you. Client does. So why start a job, unsure what you will be paid.
Next year I’m focused on this plus commercial work. I hope to work with some of you. List is being built now.
Let’s not be their monkeys anymore.
We are stronger aligned than fragmented.
Let me start by saying 2 things:
1. You or anyone can build an operate any business and structure however they want. So if this article doesn’t help you, the next one very well might.
2. I make it a rule to only discuss frameworks that I’ve used or currently do. There is no promise it will help everyone. My experience is mine alone. I just choose to share it.
Now. Getting paid. Super big issue for some in this business.
It has a lot to do with many things. But it’s 100% within your control.
I’ve posted a video. I ask you to stop right here and watch it. Then come back.
https://youtu.be/y-PvBo75PDo?si=thyn5wWQwtDLlfXq
Welcome back.
I started in this business in 2002.
I started with a medium sized company that is now at 750 million. They started out with 2 partners that had been working for another company. So they knew what they knew. But they also knew that what happens is your choice.
I was still new and flew to manage a fire in Memphis Tenn. Kind of a dumpy bar and grill. It was one thought that it was arson. But it wasn’t.
This was around a 400k cleaning job.
I was the PM. I had set a ROM and had a contract signed to start.
2-3 days in an adjuster and his little consultant arrived.
We walked with the client and discussed the scope. No real disagreements, Except but our rates, but those were already locked in and attached to the contract.
We all went back to a small clean room I’d had built.
A PVC-poly chamber with AC and power. Tables etc.
The carrier and the client were at their table discussing their (client) immediate financial needs. Rent, BI, vendors, payroll.
They settled on a distribution.
The adjuster asked the client “does your contractor have a deposit or draw invoice?”
The client thought and shrugged. “No, they haven’t asked yet”.
I stopped them and said I was drafting it up now.
I said we need $125,000 to keep going then a draw at halfway.
Adjuster said sure.
Now. Had I not been there, the future of our company might have been different.
We always had a deposit and 24-48 hour terms.
We billed T&M daily and updated client and stakeholders daily, including the burn.
When I handed over an invoice it was understood that we expected a check within days.
Now what if I didn’t mention that? How long do they think we would wait?
I did this my entire career and in my own business. I was cash flow positive and I scaled.
When I start any job I find the right time to ask “who is paying me and when”. Then I shut up. Questions, not random thoughts.
If they gave the wrong answer I told them if we are financing and acting as a bank, that’s a different contract and rate sheet.
So the video is telling and I’m sure you can connect the dots.
Is this possible, of course. I just proved it.
Do we have to keep waiting 30+ days? No. Unless you want.
Carriers invest the reserve amount they owe. Daily they make points. Multiply this by 1000’s of claims and you can guess why they will never just up one day decide to pay.
So I understand the reviews they claim they need to do? Yes. Are there contractors that don’t know what they are doing. Yep.
Is that me or even you? Probably not.
Do you deserve to starve because they want to make money? Nah
Carrier doesn’t owe you. Client does. So why start a job, unsure what you will be paid.
Next year I’m focused on this plus commercial work. I hope to work with some of you. List is being built now.
Let’s not be their monkeys anymore.
We are stronger aligned than fragmented.